Question:
If the question is silent (i.e. does not specify an accounting policy), how should we classify the following four items in the Statement of Cash Flows?
Interest paid
Dividend paid
Interest received
Dividend received
Should we assume all four are included in operating activities, or should we classify the payments as financing activities (interest paid because it relates to borrowing and dividend paid because it relates to equity financing), while the receipts are classified as investing activities?
What is the correct approach for all 4 when the question is silent?
